NielsenIQ (NIQ), a global leader in consumer intelligence, released its State of Beauty 2026 report, showing the global beauty market grew 10% year-on-year. 

The findings highlight E-commerce expanding six times faster than in-store sales and a shift to digital-first, AI-influenced commerce across key global markets.

Tara James Taylor, SVP, Beauty Vertical, NIQ, commented,

“Beauty is entering a new phase of growth defined by both resilience and rising complexity. Consumers are more intentional in how they spend, seeking products that deliver real value, simplicity, and wellbeing. At the same time, AI and digital commerce is transforming how consumers discover and evaluate products, shifting advantage to brands that show up clearly and consistently across digital ecosystems.”

Key findings from the State of Beauty 2026 report:

• Global beauty sales grew 10% year-over-year, driven by strong digital acceleration
• E-commerce is growing 6x faster than in-store sales, reshaping channel strategies
• 49% of consumers are willing to pay more for locally made products, reflecting rising demand for authenticity and trust
• 52% will pay a premium for convenience, as time-saving solutions drive purchase decisions
• 63% of consumers prioritize mental wellness, signaling continued expansion of holistic beauty

Consumer expectations are evolving toward convenience, personalization, and seamless digital experiences; beauty brands are under increasing pressure to adapt. 

More than half of consumers are now exploring AI-enabled shopping tools, with 49% already receiving beauty recommendations from generative AI. 

Social commerce continues to gain momentum, with 53% of consumers purchasing through social platforms and 22% buying directly via TikTok Shop. In China, Livestreaming accounts for 70% of beauty sales on platforms like Douyin, underscoring the growing importance of content-driven commerce.